What is business, full information

What is Trade or business, full Information

Business means to buy and sell something, or to transfer ownership of any thing, etc. Most people believe that only big industries, businesses or big companies are called business or business, but it is not so, buying an item in large quantities and selling it in a place where there is a demand for that item or there is a shortage. Earning money from the process is called business.

Types of Trade

There are mainly two types of trade – Domestic trade and Foreign trade.

Internal or Domestic Trade

That trade or business, which is done only in one’s own country, that is, when buying and selling is done between different areas, places or residences of one country, it is called internal or domestic trade.

There are mainly three types of internal or domestic trade – Local trade, State trade and Inter-state trade.

1. Local Trade

In this business mainly the goods related to our daily use are bought and sold. This trade is limited to villages and cities only. Our daily items such as fruits and vegetables, groceries, milk and curd, books for reading, grass for pets etc. come in this trade.

2. State Trade

This trade is limited to the boundaries of the states, such as the trade between the cities of Allahabad, Kanpur, Lucknow, Agra, etc., falling under the border of Uttar Pradesh, is called state trade.

3. Interstate Trade

Inter-state trade is done between big states like Haryana, Uttar Pradesh, Kerala, Madhya Pradesh, Karnataka, Andhra Pradesh, Jharkhand, Chhattisgarh, Punjab, Gujarat, Rajasthan, Maharashtra etc.

Apart from this, internal or domestic trade is divided into two more parts – Wholesale trade and Retail or Retail trade.

Wholesale Trade: The trade in which by buying goods on a large scale directly from the producer or manufacturer and selling as much of the goods to the one who needs it. It is called wholesale trade. This trade is done in big markets or big mandis.

Retail trade: In this trade, goods are bought from wholesale traders as per the requirement and small quantities of goods are sold to the consumer as per their requirement. Coriander goods and fruits and vegetables etc. come in this trade.

Foreign or International Trade

When goods are exchanged or exchanged between different governments or countries, it is called international or foreign trade. For example, trade between India and America, trade between India and Pakistan.

There are mainly three types of foreign or international trade – Import trade, Export trade and re-export trade.

1. Import Trade

When a country imports goods from another country, it is called import trade. All the countries of the world do import trade with each other.

2. Export Trade

When a country sends goods, services and other products to another country, it is called export trade.

3. Re-export Business

When a country imports goods or goods from another country and exports those goods to another country without using them, then that business is called re-export trade.